Limit of cash payment to transporters from 1st april, 2017

In order to disincentive cash transactions, it is proposed in the budget w.e.f. AY 2018-19(FY 2017-18) to amend the provision of Section 40A of the Act to provide the following:

i. To reduce the existing threshold of cash payment to a person from twenty thousand rupees to ten thousand rupees in a single day; i.e any payment in cash above ten thousand rupees to a person in a day, shall not be allowed as deduction in computation of income from “Profits and gains of business or profession”........................................

As nothing has been specified for in the case of payments made for plying, hiring or leasing goods carriages limit is 35000/- ; It seems it remains unaffected

I just confusion about the payment to transports limit.  It's not mentioned in the section. I think what did you suggest sir, it will not be affected for the transporters limit.  Thank you very much sir, such a nice response.

PAYMENT LIMIT FOR TRANSPORTER F.Y.2017-2018

DEar Mr. Dhirajlal,

Can we pay salary in cash w.e.f 01-apr-17. If yes , what is the maximum limits.

Thanks

Anu Verma

"Can we pay salary in cash w.e.f 01-apr-17. If yes , what is the maximum limits."

As such cash expenditure per day per person should not exceed Rs.10,000/- or is disallowed. & some employers are in habit of breaking the salary component on different dates!!! But its advisable to stop such practice for permanent employees, as ITO may disallow such disintegeration. (As per IT act, 1961)

Thats why Government had passed an ordinance in December 2016, which then passed in partliament as bill in February 2017 known as The Payment of Wages (Amendment) Bill 2017; seeking to enable the Centre and state governments to specify industrial units which will have to pay wages only through cheques or by transferring money into bank accounts. ( As per labour act)

By making state-level amendments to the Act, Andhra Pradesh, Uttarakhand, Punjab, Rajasthan, Kerala and Haryana have already made provisions for payment of wages through cheque and electronic transfer.

So, any salary of Rs.10,000/- and above must be paid by non-cash transaction mode.

@ Haider Hasan: For cash payment limit to transporter per day remains same as Rs. 35,000/-

Most welcome

Dear Sir,  I made a cash payment of Rs.13000/- to internet service provider.  would this be disallowed under this limit?

DEAR SIR 

PLEASE  HELP US 

I HAVE CONFUSE   PLEASE TELL USE THAN TRANPORT IS NOT ANY LORRY BUT ONLY SERVICES PROVIDER THAN TDS IS APPLICABLE  YES OR NOT 

Originally posted by : Deepak Kuamr
	DEAR SIR  PLEASE  HELP US  I HAVE CONFUSE   PLEASE TELL USE THAN TRANPORT IS NOT ANY LORRY BUT ONLY SERVICES PROVIDER THAN TDS IS APPLICABLE  YES OR NOT

Your query cannot be answered because of insufficient data........

Originally posted by : Mary Gopalakrishnan
	Dear Sir,  I made a cash payment of Rs.13000/- to internet service provider.  would this be disallowed under this limit?

Well, two different bills of different periods may be allowed......

DEAR SIR,

We have in mining business and we have to purchase deasel for machines & dumpers, would you please provide me that can I bought deasel in cash worth of Rs. 30000 - 40000 per day.

Thanks

Dinesh Goyal

@ Dinesh Goyal: Act doesn't provide you any exception, unless you have any strong reason.

If invoice amount exceed from Rs. 10000/- and we pay it two parts in different dates then expense will be allowed or not ?